Environmental Liability for Transboundary Harms: Law and Forum Choice

University of Alberta Economics Working Paper No. 2005-01-10

44 Pages Posted: 31 Jan 2005

See all articles by Andrew Eckert

Andrew Eckert

University of Alberta - Department of Economics

R. Todd Smith

University of Alberta

Henry van Egteren

University of Alberta - Department of Economics

Date Written: August 10, 2006

Abstract

We examine the economic consequences of choice of law and the choice of forum for the adjudication of transboundary harms. We examine strict liability and negligence and show that the socially optimal levels of care can be implemented in negligence only if the actions of the firm that caused the harm are adjudicated using the standards of the jurisdiction in which the harm occurs. This lends theoretical support to the extraterritorial application of domestic environmental laws in the case of transboundary disputes.

Keywords: Environmental liability, transboundary pollution, negligence, strict liability

JEL Classification: K32

Suggested Citation

Eckert, Andrew and Smith, Richard Todd and van Egteren, Henry, Environmental Liability for Transboundary Harms: Law and Forum Choice (August 10, 2006). University of Alberta Economics Working Paper No. 2005-01-10. Available at SSRN: https://ssrn.com/abstract=653184 or http://dx.doi.org/10.2139/ssrn.653184

Andrew Eckert

University of Alberta - Department of Economics ( email )

8-14 Tory Building
Edmonton, Alberta T6G 2H4
Canada

Richard Todd Smith

University of Alberta ( email )

8-14 Tory Building
Edmonton, Alberta T6G 2H4
Canada
403-492-7898 (Phone)
403-492-3300 (Fax)

Henry Van Egteren (Contact Author)

University of Alberta - Department of Economics ( email )

Edmonton, Alberta T6G 2H4
Canada
780-492-7637 (Phone)

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